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IM Group has foreclosed on Arch Companies' 88 University Place, a troubled office building. The lender alleged that Arch stopped making debt payments last summer, prompting CIM to initiate a U.C.C. foreclosure on the equity interest in the property. This default occurred amidst Arch's internal chaos, including a power struggle between partners Jeffrey Simpson and Jared Chassen.

    In late 2023, Judge Joel Cohen barred Simpson from running the company and temporarily placed the Wiener family's 35 Oak Holdings in charge. The judge expressed concerns about the business's stability under Simpson's leadership. However, 88 University Place's issues predated Arch's demise, dating back to its purchase by WeWork co-founder Adam Neumann and fashion designer Elie Tahari in 2015 for $70 million.

    The building was plagued by controversy, including a potential conflict of interest between Neumann and WeWork, which leased a significant portion of the space. During the pandemic, IBM vacated the property, leaving a massive vacancy. Arch acquired a stake in the property and secured a $71 million loan from CIM Group to renovate the building.

    CIM sent default notices to Arch last summer, alleging failure to pay interest on its mortgage and mezzanine loan. Mark Lapidus, WeWork's former head of real estate, attempted to facilitate a resolution between CIM and Arch but was unsuccessful. The situation escalated into a dramatic confrontation between Simpson and Kevin Wiener outside the building, with police involvement.

    The foreclosure marks another chapter in the tumultuous history of 88 University Place, which has been marred by disputes, power struggles, and financial woes.